Give Tanner Franklin a jug of used frying oil and eight hour's time, and he'll give you a tank full of gas.

With the average cost of petroleum-based diesel in Montana now at $2.54 a gallon, Franklin and a growing list of others believe the future of alternative fuels is now at hand.

Near the top of that list, the Alternative Energy Resource Organization, based in Helena, is looking to establish a new co-op to process fuel from used frying oil and Montana seed crops.

While the idea has been well received, AERO member Doug Crabtree confessed that discussions are early in the works.

"It takes the initial investment and getting all the players to the table," Crabtree said. "It's not insurmountable, but it takes some work. Someone has to go out and collect the used oil, or take a press to the farm."

Similar efforts have been successful elsewhere in Montana. Sustainable Systems, founded in 2001 by a group of Missoula growers, scientists and business people, got started by recovering the used frying oil from the University of Montana campus.

Four years later, the group has grown, using seed crops as the raw material to make fuels, lubricants and dietary supplements. The oilseed crushing and extraction operation in Culbertson can process any oil-bearing seed, including safflower, canola and flax.

Crabtree, who owns two diesel trucks, said he believes the success of Sustainable Systems can be emulated here in Helena.

"I have a personal, vested interest in making this happen," said Crabtree. "I fully intend to have something going this spring or summer. Whether that's on an individual basis or with a small co-op, it's too soon to say."

Matt Elsaesser, chairman of the S.A.V.E. Foundation, said his organization will add a biodiesel truck to its Helena recycling route. Burning the fuel, he said, offers both environmental and economic advantages over its petroleum equivalent.

"It's something we've always looked at," Elsaesser said. "Using a renewable fuel has a lot of appeal to us. This is a great way for us to demonstrate our commitment to the environment."

Elsaesser said S.A.V.E will get its biodiesel from Tanner Franklin, who produces small quantities of the product at his Canyon Ferry home using waste frying oil.

The fuel is made through a chemical process where glycerin is separated from vegetable oil fat. The resulting product has lower emissions than petroleum diesel. It's less toxic than table salt and biodegrades as fast as sugar.

"The fact that you can take a product that's already been used once and turn it into a fuel has a lot of appeal to me," Franklin said. "I think it will catch on in this part of the country."

Franklin bought an old Volkswagen bus from the junkyard and used it as his test lab. A year later, the diesel truck runs like a top. He makes his own fuel in 15-gallon batches in a process that takes about eight hours.

Franklin admitted that his fuel product still has some pitfalls, mainly that it gels at 20 degrees, making it a poor winter choice. But that, he said, can easily be overcome, and the product offers other benefits to those willing to pursue them.

"There are some recipes to make soap from the by-product," he said. "You're dealing with a biodegradable material. You don't have the issues you'd have making regular fuel."

Reporter Martin Kidston can be reached at 447-4086, or at mkidston@helenair.com